Pro-Rata Share Review for Partner CAM Audits

Pro-rata share review checks whether the landlord used the lease-defined share of property expenses. The key question is the denominator: what building or project area should the tenant's space be divided by?

Partner firms should review the lease definition, tenant square footage, property denominator, landlord statement, and backup before signing a finding.

Partner-led pro-rata review should tie the lease definition, tenant area, denominator area, statement percentage, and backup support into one workpaper.

The basic formula is:

Tenant area / Lease-defined denominator area = Pro-rata share

The formula is short. The review work sits in the definitions. Leases may refer to gross leasable area, rentable area, occupied area, a project area, or another defined pool.

Pro-rata share review: A partner-led review of the lease clause, tenant area, denominator area, statement percentage, and backup used to allocate CAM expenses.

Denominator types to check

The partner should record the denominator type the lease uses. Common review categories include:

Gross leasable area
Rentable area
Occupied area
Building area
Project or shopping center area
Area excluding anchor tenants or special-use space

These terms can produce different shares. The workpaper should point to the exact lease language instead of relying on the label used in the reconciliation.

Backup to request

The annual statement may show the percentage without showing the square footage behind it. Ask for the support needed to rebuild the percentage.

Useful records include:

Lease clause defining proportionate share
Tenant square footage support
Building or project square footage support
Rent commencement letter
Certified measurement or landlord area schedule
Statement worksheet showing the percentage used
Support for anchor exclusions or special-area exclusions

If support is missing, document the gap and request the specific input. Do not turn a missing denominator into a signed finding before partner review.

Partner review workflow

Anchor and occupancy questions

Some files need added review because the denominator may change by lease language or property structure.

Anchor tenants may have separate cost treatment. Vacant space may or may not stay in the denominator. Mixed-use properties may split office, retail, or other areas into separate pools.

The partner should ask:

Does the lease include or exclude anchor space?
Does vacant space remain in the denominator?
Does the lease use total project area or one building area?
Does a mixed-use property have separate pools?
Did the landlord include the same expense pool in the numerator and denominator?

These questions help separate arithmetic issues from lease interpretation issues.

How CAMAudit supports the review

CAMAudit helps partner firms organize lease clauses, square footage inputs, statement percentages, and backup gaps. It can surface denominator questions for the partner review queue.

CAMAudit does not decide legal interpretation, request records from the landlord, or replace the partner's review-and-sign step. The partner remains the auditor and owns the client-facing deliverable.

For related review topics, see CAM proration errors, why CAM share changed denominator, and management fee overcharge in CAM.

Frequently Asked Questions

What is a pro-rata share review?

It is a partner review of the lease clause, tenant area, denominator area, statement percentage, and support used to allocate CAM expenses.

What documents does the partner need?

The partner should review the lease clause, tenant square footage support, building or project area support, landlord worksheet, and any support for exclusions.

What denominator types need review?

The lease may use gross leasable area, rentable area, occupied area, building area, project area, or another defined pool.

Can CAMAudit decide the correct denominator?

No. CAMAudit organizes the clause, square footage inputs, statement percentage, and backup questions. The partner reviews the evidence and signs the deliverable.

What should the partner do when the denominator is unsupported?

Document the missing support, request the specific square footage input, and decide whether the file supports a backup request, escalation, or signed finding.

Why do anchor tenants matter in pro-rata review?

Anchor tenants may have separate cost treatment. The partner should check whether the lease includes or excludes anchor space and whether the expense pool matches the denominator.